Britain Feels Like Fantasy Island

By

Iain Martin

May 5, 2010 8:43 am GMT

To a fascinating think tank dinner and discussion in London last night. The topic was the situation confronting an incoming British government after Thursday. Following some talk of the various possible outcomes – Tory majority, Tory minority, formal Con-Lib coalition, Lab-Lib pact – we turned to the economic challenges.

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The Greek island of Lesbos. The UK is not in the same economic trouble as Greece yet, but Iain Martin thinks the country is increasingly representing a fantasy island as the campaigning politicians refuse to address the deficit.

But even in such rarified company there was little sense that Britain faces an economic emergency. A few of the economists gathered tried to present the facts and suggested the country needs to wake up, quickly. Others present seemed to think that the deficit and debt could be dealt with by cheese-paring and so-called efficiencies.

One recently retired and senior public servant put it well. In his long experience, most politicians want to avoid taking very difficult decisions and becoming unpopular. This current lot would make their efficiency savings, add a few cuts and minor tax rises, and then sit tight and hope that something turns up.

That, sadly, will not be enough.

To a fascinating think tank dinner and discussion in London last night. The topic was the situation confronting an incoming British government after Thursday. Following some talk of the various possible outcomes – Tory majority, Tory minority, formal Con-Lib coalition, Lab-Lib pact – we turned to the economic challenges.